Yes, if you can't claim the AOC, your son can file his own return to claim it. Plus he has taxable internship earnings that the credit can help offset. Enter the Total Education Expenses (tuition in Box 1 of 1098-T, room and board, books and additional expenses) in your son's return.
If the student lives at home, you may use the school's Cost of attendance figure for room and board amount.
The balance of expenses can be used to qualify for the American Opportunity Credit. Yes, it's always good to keep records of expenses paid.
He will enter both the 1099-Q and the 1098-T in his return. If you are the Recipient, he will indicate that he is the Beneficiary (and 'Recipient is not Beneficiary').
Click this link for more info on Form 1099-Q.
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